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Huawei may soon require Samsung and Apple to pay for 5G royalties

Huawei will begin demanding Samsung and Apple to pay at "reasonable rates" for 5G royalties.
Huawei may soon require Samsung and Apple to pay for 5G royalties
File photo: 5G speed tests using Huawei phones in the Philippines

Power of 5G patents

Currently, Huawei is among the top 5G manufacturer securing multiple deals in many countries as its 5G provider. The US may have found a way to prevent Huawei from growing in the smartphone industry but when it comes to 5G technology, together with advanced research and innovations, the company is still a force.

Earlier, to make an alternative solution to further increase its revenue and make up for the smartphone losses, Huawei will begin to license their 5G technology. This may affect the way the company deals with other mobile companies like Samsung and Apple.

Based on a Bloomberg report, the company intends to negotiate a cross-licensing rate for its 5G technology patents with Samsung and Apple. Through licensing fees on 5G, the pay they will get is expected between USD 1.2 billion (around PHP 58.4 billion) to USD 1.3 billion (around PHP 63.2 billion) claimed by Huawei's Chief Legal Officer Song Liuping.

To remain appealing, The company will charge at lower rates compared to its competitors in telecom equipment. Some top companies that compete with Huawei are Nokia, Qualcomm, and Ericsson. The head of the intellectual property department at Huawei, Jason Ding told Bloomberg that the company will be charging  USD 2.50 (around PHP 120) per smartphone. It is lower compared to Qualcomm's charges to Apple at USD 7.50 (around PHP 360).

Aside from smartphones, these licensing patents will also be used on other connected devices and future innovations such as smart homes, automated cars, and other robotic equipment used in the industries.

As claimed by Huawei's executives, the US penalties do not have the power to prevent it from being paid for its intellectual property. Even if the 5G infrastructure is developed by different companies.

It's interesting to see how the companies will react to Huawei's move.

Source: Bloomberg

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